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Permitted model of car finance?

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Question and Answer:

Q. My son wants a new car but does not have the finance to purchase it. I want to provide him the finance as I have the funds to purchase this car but I also want some return whilst I give him a few years to pay. How do I make this Shari’ah compliant without taking Riba?


(Query published as received)


A.  In order to finance this vehicle for him in a Shari’ah compliant manner, you should purchase the car for yourself and assume ownership of it including all risks. As long as you remain the owner of the car, you will be responsible for the vehicle. Once you obtain possession of the car, you may make an offer to your son to purchase this car for a certain amount over a fixed period of time. The total amount (instalments) must be fixed at the time of the sale.


For example, if you purchased the car for R150 000, you may sell it to your son for R175 000 payable over 5 years (R2916.66 X 60 months) subject to his agreement to purchase the vehicle.



And Allah Knows Best



Mufti Suhail Tarmahomed



Fatwa Department
Jamiatul Ulama (KZN)

Council of Muslim Theologians
223 Alpine Road, Overport, Durban
Tel : +27 (0) 31 2077099
Fax : +27(0) 31 2074163
Website :

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